COST MANAGEMENT

Do you always have the construction costs under control?

The accumulation of figures alone does not guarantee reliable cost forecasts, nor does it allow conclusions to be drawn about tendering errors. To achieve this, the structures of cost classification, which have been hardened for decades, must be broken up and supplemented with new concepts. The roots of construction costs lie in the early stages of project planning and extend through to construction accounting. With the cost estimate and its account structure of the Awarding units the construction accounting is initiated. 
The view of the construction parties with regard to cost control pursues different goals. Budget control can be treated under the premise “client – architect” or under the perspective “construction management – contractor”. The contractor’s execution control (NPK) must be clearly distinguished from the budget control of the cost estimate (BKP). 

Cost planning

Right from the start: Quality and costs in view. It is still possible to influence the construction costs at the beginning of the project planning with little effort and then it decreases drastically with the progress of the planning process.   At the time of tendering, savings of only approx. 2 – 5% can be realised. The cost-relevant decisions must therefore be made much earlier. 
Simple methods with handy tools help in the phase of project planning to influence the development of the building. SANDBOX PROJECTS uses efficient tools and construction accounting software (e.g. from
BBase
), which build on the tried and tested and apply new concepts. 

We support you in terms of costs with the following services:

  • Cost planning
  • Cost estimates KV with BKP structure
  • Cost forecasts
  • Recalculations

FAQ

Design To Cost’ refers to the effort to obtain as accurate an estimate as possible of the later costs of individual parts or components from the earliest design phase of a building and to optimise the design with regard to these costs or to design it with regard to a specified cost target.

In addition, those costs that are incurred subsequently (e.g. financing, operating costs, maintenance) are systematically included in the considerations in order to obtain an overall cost picture.

The cost estimate(KV) is the basis for cost monitoring and is recorded using the outline of the BKP 2001 (construction cost plan). As an account plan and budget, it forms the basis for further cost monitoring with suitable construction accounting software.

With the help of checklists and search terms, a CT is built up, which is also used as an easily understandable construction description. Allocation units (CE) can be incorporated or added to each account. These correspond to contractors, suppliers, etc. (or their offers or partial offers) and are recorded in the cost monitoring with the corresponding award totals (contract, supplement, inflation, direction, etc.).

In CT, ‘packages’ are put together for execution according to the awarding units. The amounts in CT and in construction accounting are structured on the one hand with accounts (vertical) and on the other hand with breakdowns (horizontal). A distinction is made between ‘splitting’ (financing breakdown=FG) and ‘adding up’ (object breakdowns=OGL) the costs in individual columns.

Construction project management is a method for carrying out planning and construction processes in the construction industry. There are various spellings of construction project management on the Internet, including construction project management (BPM). In English-speaking countries, construction project management is referred to as construction project management.

Construction project management is not to be confused with the
Construction Management
which describes the methods for carrying out a construction measure. In contrast, construction management is an integral part of construction project management and is referred to in English as construction management.

Construction project management can be described as one of the original forms of project management. The oldest major projects were construction projects, such as the building of the pyramids, railroads, and dams.

Construction project management can be understood as the sum of technical and commercial project management and construction project control. The technical and commercial project management performs the original tasks such as financing, definition of the project objectives, design of the project structure, decision-making authority and responsibility. The non-original tasks can be carried out by a construction project management and other technically involved parties.

Switzerland

The usual costs for shell construction are CHF 200 to 350 per m³ without ancillary construction costs and land costs, or CHF 500 to 800 per m³ for turnkey construction. However, depending on the design and the region, prices can also deviate downwards or upwards from the average values.

Further information on Swiss construction prices can be found on the page:

Germany

The usual costs for shell construction are 200 to 300 euros per m³ without ancillary construction costs and land costs, or 450 to 600 euros per m³ for turnkey construction.

The price per square metre of an average detached house in this country is roughly between 500 and 800 euros per square metre (divided by a storey height of 3.0 m gives the approximate cubage price).

However, depending on the design and the region, prices can also deviate downwards or upwards from the average values.

Construction prices in Germany have risen sharply in recent years and have now almost caught up with Swiss construction costs, which were originally much higher.

Further information on German construction prices can be found on the page: